Installed Building Products Reports Record Second Quarter 2024 Results

Installed Building Products, Inc. (the “Company” or “IBP”), an industry-leading installer of insulation and complementary building products, announced results for the second quarter ended June 30, 2024.

Second Quarter 2024 Highlights

(Comparisons are to Prior Year Period)

• Net revenue increased 6.6% to $737.6 million
  • Installation revenue increased 7.0% to $697.3 million, as single-family and multi-family sales growth combined with sales from IBP’s recent acquisitions
  • Other revenue, net of eliminations, which includes IBP’s manufacturing and distribution operations, increased to $40.3 million from $40.2 million
• Net income increased 5.8% to a second quarter record of $65.2 million
• Adjusted EBITDA* increased 6.3% to a second quarter record of $129.8 million
• Adjusted EBITDA, net of dispositions* was $136.6 million
• Net income per diluted share increased 5.5% to a second quarter record of $2.30
• Adjusted net income* increased 8.8% to a second quarter record of $80.5 million, or $2.84 per diluted share
• Adjusted net income, net of dispositions* was $85.7 million, or $3.02 per diluted share
• At June 30, 2024, IBP had $380.3 million in cash and cash equivalents
• Repurchased approximately 215 thousand shares of common stock at a total cost of $46 million, including commissions
• Declared second quarter dividend of $0.35 per share that was paid to shareholders on June 30, 2024

Recent Developments

• IBP’s Board of Directors declared the third quarter regular cash dividend of $0.35 per share
• In July 2024, acquired Euroview Enterprises, LLC, an installer of a diverse set of building products generating annual revenue of approximately $20 million

“IBP reported another strong quarter of growth and profitability highlighting the value our talented and committed teams provide to our residential and commercial customers. Growth across our core end markets remained positive during the second quarter as builders continued to meet new construction home demand, helping IBP achieve another quarter of record sales and earnings,” stated Jeff Edwards, Chairman and Chief Executive Officer.

“Our strategic focus on ensuring we provide a high quality, valuable service to our customers continues to support robust profit margins and strong operating cash flow. With our robust balance sheet, we remain well-positioned to continue to execute on our growth-oriented acquisition strategy. Year-to-date, we have acquired over $50 million of annual revenue and expect 2024 to be a solid year of acquisition activity. In addition, during the second quarter we repurchased $46 million of our common stock, reflecting our commitment to return capital to shareholders,” continued Mr. Edwards.

“Given our current end market exposure, our outlook for 2024 remains positive and we continue to focus on both organic growth and accretive acquisitions in order to create value for our shareholders over the long term,” concluded Mr. Edwards.

Acquisition Update

IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products. To date in 2024, IBP has acquired over $50 million of annual revenue.

During the 2024 second quarter and in July 2024, IBP completed the following acquisitions:

• In April 2024, IBP acquired Trade Partners, Inc., a North Carolina-based installer of insulation and numerous complementary products including, shower doors, closet shelving, mirrors, gutters, window blinds with single-family and multi-family customers generating annual revenue of over $6 million.
• In June 2024, IBP acquired Thrice Energy Solutions, LLC, an Oklahoma-based installer of insulation, and Gutter Pro Enterprises, Inc., a Massachusetts-based installer of gutters, which represent combined revenue of approximately $14 million.
• In July 2024, IBP acquired Euroview Enterprises, LLC, Contract Mirror and Supply Co., and CLM Solutions, LLC (collectively “Euroview”), an Illinois-based residential and commercial installer of building products with exposure to key construction markets in the Midwest. Euroview has combined annual revenue of approximately $20 million.

2024 Third Quarter Cash Dividend

IBP’s Board of Directors has approved the Company’s quarterly cash dividend of $0.35 per share, payable on September 30, 2024, to stockholders of record on September 15, 2024. The third quarter regular cash dividend represents a 6% increase from last year’s third quarter cash dividend payment.

Share Repurchases

During the three months ended June 30, 2024, IBP repurchased approximately 215 thousand shares of its common stock at a total cost of $46 million, including commissions. At June 30, 2024, the Company had over $250 million available under its stock repurchase program.

Second Quarter 2024 Results Overview

For the second quarter of 2024, net revenue was $737.6 million, an increase of 6.6% from $692.1 million for the second quarter of 2023. On a consolidated same branch basis, net revenue increased 4.8% from the prior year quarter, as growth in our residential end markets more than offset headwinds in our commercial end market. Residential sales growth within the Company’s Installation segment was up 7.3% on a same branch basis in the quarter, both single-family same branch sales and multi-family same branch sales increased from the prior year quarter.

Gross profit improved 8.1% to $251.4 million from $232.5 million in the prior year quarter. Gross profit and adjusted gross profit* as a percent of net revenue were both 34.1%, up from 33.6% in the same period last year. Adjusted gross profit primarily adjusts for the Company’s share-based compensation expense.

Selling and administrative expense, as a percent of total revenue, was 19.1% compared to 18.6% in the prior year quarter. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.5% compared to 17.9% in the prior year quarter.

Net income was $65.2 million, or $2.30 per diluted share, compared to $61.6 million, or $2.18 per diluted share in the prior year quarter. Net profit margin for the second quarter was 8.8% compared to 8.9% in the prior year quarter. Adjusted net income* was $80.5 million, or $2.84 per diluted share, compared to $74.0 million, or $2.62 per diluted share in the prior year quarter. Adjusted net income margin* for the second quarter was 10.9% compared to 10.7% in the prior year quarter. Adjusted net income accounts for the impact of non-core items in both periods, including an addback for non-cash amortization expense related to acquisitions.

EBITDA* was $119.6 million, a 2.6% increase from $116.6 million in the prior year quarter. Adjusted EBITDA* was $129.8 million, a 6.3% increase from $122.1 million in the prior year quarter, representing an adjusted EBITDA margin* of 17.6% for both quarters. Adjusted EBITDA, net of dispositions* was $136.6 million, representing an adjusted EBITDA margin, net of dispositions* of 18.5%.

For full second quarter results click here.

About Installed Building Products

Installed Building Products, Inc. is one of the nation’s largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects in all 48 continental states and the District of Columbia from its national network of approximately 250 branch locations.

Source: Installed Building Products, Inc.